Financial statistics issued by China’s central bank show that in
June both M2 (broad money supply) and M1 (narrow money supply) rose
higher, 0.32 percentage points and 1.64 percentage points
respectively, than those in May and are respectively up 17.06
percent and 20.92 percent compared to those in the same period of
last year.
These changes indicate that currency supply is accelerating at
top gear. It is a signal that China’s rapidly growing economy is at
a greater risk of becoming an overheated one, experts comment.
Under such circumstances, experts urge China to issue
restrictive monetary and financial policies as soon as possible.
Some analysts predict that such a restrictive financial policy will
be given top priority.
As for the increased liquidity, some analysts think that issuing
government securities and other governmental bonds can solve the
problem.
For more details, please read the full
the?story in Chinese. (
http://www.eeo.com.cn/finance/other/2007/07/12/75761.html)
(China.org.cn July 12 2007)
